Contracts
When a seller accepts a buyer's offer with written modifications, the effect is:
AThe original offer is accepted
BA counteroffer is created, terminating the original offer✓ Correct
CThe buyer is legally bound to accept the modifications
DA voidable contract is formed
Explanation
When a seller modifies any term of the buyer's offer, the original offer is terminated and a new counteroffer is created, which the buyer may accept or reject.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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